Coca-Cola plans $1B IPO of Indian bottling arm
What's the story
Coca-Cola is planning to raise around $1 billion (approximately ₹9,500 crore) through an initial public offering (IPO) of its Indian bottling arm, Hindustan Coca-Cola Beverages, according to Bloomberg. The Atlanta-based beverage giant has invited investment banks to pitch for roles in the proposed IPO. Presentations are scheduled for next week in London, where Rothschild & Co., the company's adviser on this transaction, will meet potential bankers.
Valuation expectations
Coca-Cola seeks $10 billion valuation for Indian bottler
Coca-Cola is hoping to get a valuation of around $10 billion for its Indian bottling business. However, the details of this IPO, including its timing, size, and structure, are yet to be finalized. The move comes as part of a larger trend of multinational companies monetizing their Indian businesses through public markets amid strong domestic investor demand.
Company profile
Hindustan Coca-Cola operates 14 manufacturing plants across 12 states
Hindustan Coca-Cola is one of the largest soft-drink bottlers in India. The Bengaluru-based company serves over 1.7 million retail outlets and employs more than 5,000 people. It operates 14 manufacturing plants across 12 states and distributes its products to 236 Indian districts. Last year, Coca-Cola sold a minority stake in Hindustan Coca-Cola Beverages to Jubilant Bhartia Group as part of its strategy to bring on board a local strategic partner while continuing expansion in one of its fastest-growing markets.